In a highly-anticipated speech at the central bank’s annual retreat in Jackson Hole, Wyoming, Fed Chair Bernanke said the central bank remained prepared to implement fresh measures to stimulate the faltering U.S. economy.

Bernanke added that the Fed expects “a moderate recovery” to continue and strengthen over time.

Bernanke also announced that the central bank’s September policy-setting meeting would be extended to two days from one, in order to “allow a fuller discussion” on the economy.

Meanwhile, in Japan, Finance Minister Noda defeated Trade and Industry Minister Banri Kaeida to become the country’s sixth prime minister in five years.

Later in the day, European Central Bank President Jean-Claude Trichet was appearing before the European Parliament's Economic Committee in Brussels, to testify on the region’s debt crisis, while the U.S. was to release industry data on pending home sales.

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